Question 1

Having an environment where identified risks are treated professionally will lead to better control of risks.

Accepted Answer

A) True 
 B)False

Question 2

Choosing to move a concert indoors to eliminate the threat of bad weather is an example of ____________ a risk.

Accepted Answer

A)   transferring
B)   escalating
C)   avoiding
D)   mitigating
E)   retaining

Question 3

Identify and briefly describe the four steps in the risk management process.

Accepted Answer

Risk Response Control-the actu...

Question 4

Adopting proven technology instead of experimental technology is an example of mitigating a risk.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT one of the potential responses to a specific risk event?

Accepted Answer

A)   Mitigating
B)   Retaining
C)   Ignoring
D)   Transferring
E)   Avoiding

Question 6

Which of the following risks are likely to be retained?

Accepted Answer

A)   Risks of high consequence
B)   Risks of low likelihood
C)   Risks of high likelihood
D)   Risks that are escalated
E)   Risks that are transferred

Question 7

Risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.

Accepted Answer

A) True 
 B)False

Question 8

Most changes on a project are related to

Accepted Answer

A)   scope changes.
B)   improvement changes.
C)   implementing contingency plans.
D)   customer-driven changes to requirements.
E)   All of these alternatives are correct.

Question 9

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to

Accepted Answer

A)   rise sharply.
B)   drop sharply and then level out.
C)   rise sharply and then level out.
D)   remain about the same.
E)   slowly drop.

Question 10

The project being delayed is an example of a major risk that should be assessed.

Accepted Answer

A) True 
 B)False

Question 11

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as

Accepted Answer

A)   risk forecasting.
B)   risk management.
C)   contingency planning.
D)   scenario analysis.
E)   disaster protection.

Question 12

Which of the following is NOT included in a Failure Mode and Effects Analysis?

Accepted Answer

A)   Impact
B)   Probability
C)   Detection
D)   Risk value
E)   All of these are included

Question 13

What is the difference between contingency reserves and management reserves?

Accepted Answer

Contingency reserves are controlled by t...

Question 14

Flooding would be devastating to the project; however, it is very unlikely. The project manager is most likely to __________ this risk.

Accepted Answer

A)   prepare for
B)   retain
C)   diminish
D)   distribute
E)   acknowledge

Question 15

Contingency reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.

Accepted Answer

A) True 
 B)False

Question 16

The likelihood of a risk occurring _____ as a project goes through its life cycle.

Accepted Answer

A)   increases
B)   decreases
C)   moderates
D)   amplifies
E)   becomes more probable

Question 17

One common mistake made early in the risk identification process is to

Accepted Answer

A)   not consider all possibilities.
B)   encourage participants be over optimistic.
C)   support participants being over pessimistic.
D)   focus on consequences and not on the events that could produce consequences.
E)   give too much attention to past events.

Question 18

Risks are evaluated in terms of

Accepted Answer

A)   likelihood and cost.
B)   cost and schedule.
C)   impact and cost.
D)   time and impact.
E)   likelihood and impact.

Question 19

What is the risk value of a risk whose impact score is 5, whose probability score is 5 and whose detection score is 1?

Accepted Answer

A)   5
B)   25
C)   125
D)   11
E)   10

Question 20

The risk assessment form contains all of the following EXCEPT

Accepted Answer

A)   likelihood of the risk event occurring.
B)   potential impact of the risk event.
C)   who will detect the occurrence of the risk event.
D)   difficulty of detecting the occurrence of the risk event.
E)   when the risk event may occur.

Exam 7: Managing Risk

Most changes on a project are related to

Correct AnswerverifiedShow Answer

Which of the following risks are likely to be retained?

Correct AnswerverifiedShow Answer

What is the risk value of a risk whose impact score is 5, whose probability score is 5 and whose detection score is 1?

Correct AnswerverifiedShow Answer

The likelihood of a risk occurring _____ as a project goes through its life cycle.

Correct AnswerverifiedShow Answer

Contingency reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.

Correct AnswerverifiedShow Answer

The risk assessment form contains all of the following EXCEPT

Correct AnswerverifiedShow Answer

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as

Correct AnswerverifiedShow Answer

Risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.

Correct AnswerverifiedShow Answer

Having an environment where identified risks are treated professionally will lead to better control of risks.

Correct AnswerverifiedShow Answer

What is the difference between contingency reserves and management reserves?

Correct AnswerverifiedContingency reserves are controlled by t...View AnswerShow Answer

Adopting proven technology instead of experimental technology is an example of mitigating a risk.

Correct AnswerverifiedShow Answer

Flooding would be devastating to the project; however, it is very unlikely. The project manager is most likely to __________ this risk.

Correct AnswerverifiedShow Answer

Choosing to move a concert indoors to eliminate the threat of bad weather is an example of ____________ a risk.

Correct AnswerverifiedShow Answer

The project being delayed is an example of a major risk that should be assessed.

Correct AnswerverifiedShow Answer

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the potential responses to a specific risk event?

Correct AnswerverifiedShow Answer

Risks are evaluated in terms of

Correct AnswerverifiedShow Answer

Identify and briefly describe the four steps in the risk management process.

Correct AnswerverifiedRisk Response Control-the actu...View AnswerShow Answer

One common mistake made early in the risk identification process is to

Correct AnswerverifiedShow Answer

Which of the following is NOT included in a Failure Mode and Effects Analysis?

Correct AnswerverifiedShow Answer

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Contingency reserves are controlled by t...
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Risk Response Control-the actu...
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